What is FIRM risk scorecard

Question

What do you mean by the term FIRM risk scorecard? Briefly describe it.

Answer 1

The FIRM Risk Scorecard recommended by the Hopkin is basically a strategic risk assessment tool. It offers a framework for systematic identification of risks to an organization. In specific the technique focuses on the timescale of the consequence of risk, character of the risk’s impact on organization and associates this to the risk exposure and on the whole risk capacity of the business. By doing this scorecard highlights the complicated and interdependent nature of risk in businesses and the consequence which it can have over the entire organization. The methodology does this by considering the risk in the following categorizations: Financial, Infrastructure, Reputation and Marketplace (or FIRM). The technique considers risk as external (or reputation and market-place) and internal (that is, financial and infrastructure). This permits a cross disciplinary mix or quantitative and qualitative factors to be considered whenever assessing the risk of organization faces.